Title: Choice Under Constraint: Total Quantity
1Choice Under Constraint Total Quantity
Marginal Utilities of Consumption
You can get 3 lbs total of anything you want.
What would you choose?
2Constraint Total Quantity. First Pound
Marginal Utilities of Consumption
Choosing the first pound Which would give you
the highest marginal utility?
Choose Bananas 150 120 100
Relevant Marginal Utilities
3Constraint Total Quantity. Second Pound
Marginal Utilities of Consumption
Choosing the second pound Consuming 1 lb bananas
and 0 lbs of apples oranges each
Choose Oranges 120 100 100
Relevant Marginal Utilities
4Constraint Total Quantity. Third Pound
Marginal Utilities of Consumption
Choosing the first pound Consuming 1 lb of
bananas and oranges each, and 0 lbs of apples
Choose Apples or Bananas 100 100 90
Final Selection either 2 lbs bananas and 1 lb of
oranges, or 1 lb of apples, oranges and bananas
Relevant Marginal Utilities